ET NEWS

Over $19 billion was liquidated from the cryptocurrency market on Friday — the biggest single-day wipeout on record — after U.S. President Donald Trump announced a 100% tariff on “any and all critical software” imports from China. The shock move sent digital assets into a tailspin, triggering massive sell-offs and liquidations across major tokens.Over the past 24 hours, more than 1.6 million traders liquidated, according to Coinglass data. More than $7 billion of those positions were sold in less than one hour of trading on Friday.In its post on X, Coinglass said the total might be much higher given that exchanges don’t necessarily report such orders in real time. Binance Holdings Ltd., the world’s largest crypto exchange, only reports one liquidation order per second, according to the post.“The focus now turns to counterparty exposure and whether this triggers broader market contagion,” said Brian Strugats, head trader at Multicoin Capital. He added that some estimates place total liquidations above $30 billion.The move came in response to China’s decision to impose export restrictions on rare earth minerals — key inputs for global manufacturing and technology production — a step that Washington has described as “extraordinarily aggressive.”In the last 24 hours, Bitcoin was down 7.6% at $112,394.31, while Ethereum plunged over 13% to $3,793, according to data from CoinMarketCap. The world’s largest cryptocurrency witnessed heavy liquidations worth $9.5 billion after failing to hold support near the $120,000 level.Other major digital assets also joined the sell-off. Tether edged down 0.1% to $1, with market cap dipping to $178.97 billion. Binance Coin declined 6.6% to $1,094.09, while XRP suffered one of the steepest drops, plunging 22.85% to $2.33 and eroding its market value by 16.31% to $140.19 billion.The sharp correction followed Trump’s fiery post on Truth Social, where he accused Beijing of taking an “extraordinarily aggressive position on trade” by announcing export controls on a wide range of goods.“It has just been learned that China has taken an extraordinarily aggressive position on trade... imposing large-scale export controls on virtually every product they make,” Trump wrote. “Based on the fact that China has taken this unprecedented position... the United States will impose a tariff of 100% on China, over and above any tariff that they are currently paying.”He added that Washington would also implement “export controls on any critical software,” potentially disrupting global technology supply chains.Also read: Market to find clear direction by 2025-end as earnings rebound: Motilal Oswal’s Siddhartha KhemkaThe announcement marks the latest flashpoint in the U.S.-China trade standoff.Commenting on the development, Edul Patel, CEO of Mudrex, said that the current market is an opportunity for investors to build long-term positions."The crypto market is reacting strongly to Trump’s announcement of a 100% tariff on China, with a total market cap standing at $3.74 trillion. Bitcoin briefly tested $102,000 levels before recovering to the $113,000 range. Historically, October corrections (as seen between 2017 and 202) have often been followed by relief rallies of up to 21%. Despite the short-term selling pressure, overall sentiment remains bullish. With gold trading in an overbought territory, potential capital rotation is expected, driving renewed momentum in crypto. Additionally, the market is anticipating approval of dozens of spot altcoin ETFs in the US, opening doors for fresh capital to enter the markets," Patel said.He added, "For investors, this phase creates an attractive entry opportunity. These declines could be used to gradually build long-term positions, especially in fundamentally strong assets like Bitcoin and Ethereum, before the next leg of the bull cycle begins."(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

The Indian bond market remained largely range-bound through September 2025, with the 10-year benchmark government bond yield rising marginally by four basis points to close at 6.57%.In contrast, US Treasury yields eased, with the 10-year yield ending the month at 4.15%, following the US Federal Reserve’s 25 basis point rate cut — its first since December 2024.For Full Coverage on Bonds - Click HereAccording to Devang Shah, Head – Fixed Income, Axis Mutual Fund, the domestic market continues to find support from stable monetary policy and healthy liquidity conditions. The Reserve Bank of India’s (RBI) Monetary Policy Committee maintained the repo rate at 5.5%, adopting a neutral stance while revising FY26 GDP growth to 6.8% and lowering the average inflation forecast to 2.6%. The RBI also introduced measures to strengthen the financial ecosystem and encourage the internationalisation of the rupee.Banking system liquidity has stayed in surplus since March 2025, aided by government cash drawdowns and incremental infusions from earlier CRR cuts. This surplus is expected to remain comfortable through early 2026.Meanwhile, headline inflation edged up slightly to 2.1% in August, though food prices continued to moderate, keeping core inflation steady at 4.1%.The Fed’s rate cut has provided a supportive backdrop for Indian bonds, leading to a flatter yield curve. The government’s revised borrowing calendar—reducing long-term bond supply and increasing issuance in the 3–10-year segment—has also helped stabilise yields.Shah expects the RBI to deliver one more 25 bps rate cut in December, with a possibility of another in early 2026 if trade-related headwinds persist.“Most of the RBI’s rate easing is likely behind us. With inflation well within target, the outlook points to a ‘lower for longer’ interest rate environment,” Shah noted.He added that while duration plays have run their course, accrual strategies now offer better risk-reward opportunities, particularly in short-term (2–5 year) corporate bonds.Shah expects the 10-year G-Sec to trade between 6.30% and 6.65% for the rest of FY26. From an investor standpoint, Axis Mutual Fund continues to recommend short- to medium-term debt funds, complemented by tactical gilt allocations, to capture carry opportunities in a stable-rate regime.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

Over the last six years, India’s REIT story has quietly but decisively come of age. What began as a niche, yield-seeking play for FIIs has evolved into a mainstream, DII-led equity product. Despite COVID, occupancy swings and a rising-rate cycle, India’s listed REITs have delivered strong, stable total returns. In doing so, they have deepened investor confidence and established their footing as a credible, well-regulated and lucrative asset class within Indian portfolios.Across most global markets, REITs have cap tables anchored by index funds and passive ETFs, alongside long-only active managers, pensions and insurers. SEBI’s recent move to reclassify REITs from hybrid to equity instruments marks a significant move to align this asset class with global standards, with clear implications for liquidity, investor participation, and valuation of this asset class.Mainstreaming REITs through equity classificationUntil now, REITs were seen as yield products, or quasi-debt instruments, but not fully comparable with listed equities due to the risk and return profile. By bringing them under the equity umbrella, SEBI has opened the door for both domestic and global institutional investors to treat REITs as part of their core equity allocation, a move that could fundamentally change how capital flows into this space.As a direct result, REITs are now set for index inclusion across key benchmarks. For instance, Embassy REIT and Knowledge Realty could join the Nifty 500 and Nifty MidCap 150, while Mindspace REIT, Nexus REIT and Brookfield REIT qualify across Nifty 500 and SmallCap indices. This marks an essential step toward mainstreaming the asset class, signalling that REITs no longer serve as peripheral instruments.Why index inclusion is a gamechangerFor REITs, index inclusion is critical because it ensures a steady base of demand through passive strategies while also putting them on the radar of active fund managers. However, the impact will be uneven given that not all indices carry equal weightage. Indices like the Nifty Midcap 150, SmallCap 50, and SmallCap 100 are widely tracked with a far greater AUMs than others, meaning actual inflows will cluster around those with higher institutional traction.Further, NSE’s methodology also considers the Average Daily Traded Value (ADTV) over six months. This ensures that only actively traded counters get included.Beyond flows: Why this reclassification mattersIndex inclusion is just one part of the story. The larger significance lies in how this reclassification addresses long-standing investor concerns.Valuation re-rating: Currently, majority Indian REITs trade at a discount to their Net Asset Value (NAV). With increased liquidity, a sector-wide re-rating is possible. Global precedent is instructive. U.S. REITs that once traded at discounts moved to NAV premiums in the early 2000s as the asset class matured.Liquidity: With index inclusion, REIT counters are likely to witness a step-up in secondary market activity, narrowing spreads and improving price discovery.Expanded investor universe: Domestic mutual funds, portfolio management services (PMS), and even global institutions can look at REITs as other equity holdingsThis shift could also spill over to hybrid funds. With REITs migrating into the equity basket, they may find additional headroom to participate in InvITs. This could unlock incremental flows for InvITs, further deepening the yield-oriented product universe.Looking aheadAs with all regulatory developments, the true test will now be in execution: whether the inflows materialise, whether valuations converge toward NAV, and whether the sector attracts long-term capital. SEBI’s move has laid some clear groundwork for REITs to emerge as a mainstream asset class, with the potential to reshape how both domestic and global investors engage with India’s real estate markets.(The author is Managing Director and Head, Equity Capital Markets, Avendus Capital)